Microsoft share price: Q4 earnings preview
We examine when the tech giant will report its fourth quarter results, what analysts currently think of the stock, and Microsoft’s own Q4 guidance.
When will Microsoft report its next quarterly results?
Microsoft (MSFT) is set to report its fourth quarter (Q4) earnings results for fiscal 2020, this Wednesday, 22 July.
Analysts remain bullish on the tech giant
Even though the Microsoft share price has rallied 46% in the last year – last trading on a market capitalisation in excess of US$1.5 trillion – analysts remain bullish on the tech stock’s prospects, with the company commanding a Buy rating on average, according to MarketWatch.
All up, the current average analyst price target on MSFT stands at US$218.02 per share, implying some potential upside for traders and investors at current price levels, also according to MarketWatch.
At the time of writing, Microsoft traded at US$202.88 per share.
Recent results and Q4 guidance in focus
While Microsoft currently represents one of the most expensive publicly listed US companies in terms of market capitalisation – it is currently trading on an earnings multiple of 33.8x, significantly lower than it did towards the end of 2017.
Specifically, for the quarter ending 31 December, Microsoft traded at a heady 57.34x earnings multiple, before this key metric fell sharply over the following quarters. Since then however, Microsoft's share price and price-to-earnings ratio have ticked higher, driven by investors potentially favouring the tech giant’s growth prospects and stability.
Moreover, despite Microsoft's monolithic size – as part of the company’s latest quarterly (Q3) results, ending 31 March, the company reported double-digit top and bottom-line growth. Since then the stock is up close to 15%.
Looking at the company’s Q3 results on a more granular level, Microsoft reported total revenue of US$35.0 billion (+15%), against net income of US$10.8 billion (+22%) and earnings per share (EPS) of US$1.30 (+23%). Elsewhere, Microsoft's Intelligent Cloud segment continues to grow strongly, with cloud revenue soaring 27% to US$12.3 billion for the quarter.
Mind you, in spite of the stock’s recent run up, the company noted that the coronavirus has impacted operations to a degree, saying:
‘In the final weeks of the quarter, there was a slowdown in transactional licensing, particularly in small and medium businesses, and a reduction in advertising spend in LinkedIn.’
The company added that ‘The effects of COVID-19 may not be fully reflected in the financial results until future periods.’
Looking forward, as part of Microsoft's Q3 results, the tech giant provided the following guidance:
- Productivity and Business Processes revenues of between US$11.65 billion to US$11.95 billion
- Intelligent Cloud revenues of between US$12.9 billion to US$13.15 billion
- More Personal Computing revenues of between US$11.3 billion to US$11.7 billion
- Operating expenses of between US$11.8 billion to US$11.9 billion
Investors will likely be keen to see Microsoft hit or exceed those guidance figures when the tech giant reveals its fourth quarter results this Wednesday.
Want to trade Microsoft: long and short?
Create an IG trading account or log in to your existing account to get started now.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
